Response: Indexed-Annuity Crusader? Really???
December 31, 2009 by Lee Munson
PDF for Setting It Straight with Lee Munson
ORIGINAL ARTICLE CAN BE FOUND AT: Indexed-Annuity Crusader: Really???
Dear Mr. Munson:
I guess you know that you’ve hit the big time when people start blogging about you.
Although I appreciate the attention, indexed annuities are neither “high cost” nor “high load.” There are indexed annuities with first-year surrender penalties as low as 4.5% regardless of the fact that typically a purchaser buys a product with a first-year penalty of 10%. In addition, surrender charges on indexed annuities are as short as one year, despite the fact that the most popular products have longer surrender charges. Keep in mind that surrender charges and penalties only apply IF the purchaser cash surrenders more than their annual 10% penalty-free amount.
The article you are referring to cited an average indexed annuity commission of 6.46%. You have this figure wrong on your website. Coincidentally, the average indexed annuity commission dropped to 6.43% for 3Q2009. If you find this figure not to be “reasonable,” I’d be interested to review a retirement income product that pays a comparable one-time commission that is more advantageous. You may also be aware of the fact that recently several indexed annuity carriers made an industry-breaking move in levelizing their commission structures. This is a change we have yet to see from any other retirement income product line.
Thanks for the publicity.
Sheryl J. Moore
President and CEO
LifeSpecs.com
AnnuitySpecs.com
Advantage Group Associates, Inc.
(515) 262-2623 office
(515) 313-5799 cell
(515) 266-4689 fax
